MadAbout
Money
THE WAY YOU SPEND, MANAGE
AND INVEST YOUR MONEY LEAVES
A PROMINENT
IMPACT ON YOUR LIFE, AND EVEN THEN, MAJORITY
OF SCHOOLS DON’ T TEACH YOU
THESE SKILLS.
ALTHOUGH THE MARKET IS FULL OF EVER
CHANGING CONCEPTS, BUT THERE ARE SOME RULES THAT JUST NEVER CHANGE. THEY ARE CALLED THE BASICS, AND THEY FORM THE FOUNDATION OF
ALL OTHER RULES.
Let’ s take a look at these rules, otherwise you will never know what to do with your money, and you’ ll keep losing it.
NEVER SPEND MORE THAN YOU EARN:
It is plain common sense, and we would like to explain with an example. Suppose you earn Rs. 30,000 per month, and have a monthly expense of Rs. 38,000. This would mean that each month, you will have a debt of 8 thousand rupees, resulting in a total debt of Rs. 96,000 at the end of the year. This amount would be hard to clear up. On the other hand, if you spend exactly what you earn, you won’ t have even a single penny to save for an emergency. If your expenses are less than your income, you will always have money to save. So, make sure your expenses are always less than your income, and the lesser the expense, the more you can save.
We all have heard that good old quote,“ Money begets money”, right? As much as it sounds like honey to the ears, it takes effort and wisdom to make it a reality.
PLAN FOR THE FUTURE:
And we are not talking about retirement here. Remember all those car ads where they ask you to make a down payment now and start giving installments from next year onward, you’ ve got to be sure that you will be able to make those payments. If you are not sure, let go of the deal. On the other hand, if you invest in an accidental cover plan for your car, you will have your expenses covered in case of such unwelcoming emergency.
MAKE MORE MONEY WITH YOUR MONEY:
People always wonder how rich keep making money even while they sleep. The thing is they have saved plenty of it before setting foot towards this goal. Once you have saved a good amount of money, invest some part of it in high interest investment account. But never ever empty all the money from your low interest standard savings account. Always save enough amount of money so that you have something with you in case an investment doesn’ t work out. See, the first thing that you must know, and we are sure you do, is that the trends of money making have changed a great deal. But the basics haven’ t changed a bit. Yes, there are higher paying jobs; there are more growth opportunities, in current times. But keeping your expenses lower than your income, investing part of your saved money will always be a good advice. And never blow up your paycheck the moment you get it, think about our future and plan accordingly.
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